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One Ammonium price high drop
Jan 27, 2018

An ammonium market has weakened recently, the new single deal is not ideal, some enterprises offer down 50~100 yuan (ton price, the same below). However, an increase in the output of one ammonium, a decrease in the supply of the domestic market, a high price of one ammonium and a limited space for decline. At present 55% powdered one ammonium factory quotes more in 2350~2450 yuan, 58% powdery one ammonium 2450~2550 yuan, 60% powdery one ammonium 2500~2650 yuan.

One ammonium is mainly used as raw material for compound fertilizer production, which is affected by the purchasing status of compound fertilizer enterprises. According to the analysis of the division, by demand light, raw materials and environmental factors, such as the impact of the compound fertilizer enterprise underemployment, most large-scale compound fertilizer enterprises operating rate is only about 53%. Large-scale compound fertilizer enterprises in the early procurement of raw materials are still in stock, due to underemployment caused by the slow consumption of raw materials, a short period of time an ammonium purchase intention is not high.

In addition, sulfur yellow price lower is also a factor in the price of ammonium. The recent demand for sulfur is still not ideal, prices continue to go down, the current Yangtze River port, Fangchenggang import sulphur yellow price reduced to 1240 yuan, Puguang Wanzhou Port and Dazhou factory prices were cut 40 yuan, 60 to 1180 yuan, 1060 yuan. Each production of 1 tons of ammonium about 0.5 tons of sulfur, sulfur yellow price lower, the cost of an ammonium production.

Due to the low operating rate of enterprises, the production of one ammonium is still declining. 2017 years ago 11 months, the domestic production of 12.766 million tons of ammonium, down 3% year-on-year, production reduced by about 380,000 tons. and export volume is increasing, 2017 years ago 11 months cumulative export of 2.498 million tons of ammonium, 33.1% year-on-year growth, export volume increased by 622,000 tons. Output to reduce exports increased, the equivalent of the domestic market supply reduced by 1 million tons, supporting the price of an ammonium to maintain a high level. In addition, now the liquid ammonia price is very high, generally in more than 3100 yuan, an ammonium integrated production cost is still high, the future one ammonium price falls space is limited, is expected to be within 100 yuan.


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